NEA set to boost innovation, global ties to better serve China's emission goals

China will push forward its green and low-carbon transition while stepping up domestic oil and gas production and diversifying sources of energy to ensure supply in the country next year, the National Energy Administration said during its annual meeting last week.

The NEA said it expects that China will produce 199 million metric tons of crude in 2021, the third consecutive year of higher crude output by the country. Natural gas output is seen reaching 206 billion cubic meters and shale oil production will reach 2.4 million tons. Shale gas production is estimated to reach 23 billion cubic meters this year with positive growth momentum.

"China will also step up making clean and efficient use of coal in 2022, given the fuel's dominant role in the country's power mix, while steadily improving the energy structure. China has been increasing efforts to develop renewable energy resources in recent years in a bid to facilitate its green and low carbon transformation," said Zhang Jianhua, head of the NEA.

The government will steadily push forward consumption of solar and wind power in South, Central and East China, while constructing massive wind and solar power facilities in the Gobi Desert and other arid regions, better taking advantage of their rich solar and wind resources.

The country will speed up the progress of some major hydropower projects in Southwest China next year, while gradually pushing forward development and utilization of biomass energy in the country as well, the NEA said.

It plans to actively and steadily push for nuclear power construction, with newly added installed capacity for nuclear power reaching 3.67 million kilowatts next year. The national power grid will be further optimized upon the completion of new energy storage systems and pumped storage hydropower projects in 2022, it said.

The administration also vowed to push technological innovation in energy and expand global cooperation to facilitate the country's green pledges of achieving a carbon peak by 2030 and carbon neutrality by 2060.

Solar and wind power generation will become the main contributors to China's incremental power capacity for decades to come, analysts said.

Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute, said the NEA's annual meeting highlighted the importance of clean and efficient use of coal in China's low-carbon development path, along with the nation's plans to increase efforts in developing renewable energy for green and low carbon transformation.

It is also necessary to improve energy regulatory effectiveness, upgrade oil and gas production, storage, transport and sales systems, and expand international cooperation to diversify energy supply channels, Luo said.